Investcorp completes US truck unit sale for $1bn
Manama, November 28, 2012
Bahrain-based Investcorp said it has completed the sale of FleetPride, North America's largest truck and trailer parts distributor, to top private equity investment firm TPG for more than $1 billion.
FleetPride is an active participant in the $22 billion US truck and trailer parts aftermarket, and is now the largest truck and trailer parts distributor in North America, with a presence in key commercial and economic hubs throughout the country, said a report in the Gulf Daily News, our sister publication.
"FleetPride represents the type of core, mid-market corporate investment that we typically target in the US," said Investcorp Gulf business president Mohammed Al Shroogi.
"We worked closely with FleetPride's management from a very early stage in our investment to successfully implement strategic growth plans, thereby enhancing the company's operations.
"The success of the FleetPride investment is a testament to our ability to grow our portfolio companies, even during challenging economic conditions, while maximising the returns for our investors," he said.
Since its acquisition of FleetPride in 2006, Investcorp has supported 31 different add-on acquisitions by the company, strengthening its cross-country supply chain and adding total acquired sales of more than $270 million.
Investcorp helped increase FleetPride's branch count to 248 with operations in 45 states. These initiatives increased the company's earnings from $52 million at the time of purchase in June 2006 to more than $100 million forecasted for 2012, helping generate a net return of more than 200 per cent for investors.-TradeArabia News Service